Margrethe Vestager closing in on Apple tax case

The European Commission is closing in on a final decision in its state-aid probe into Apple’s tax affairs, which could force the Irish government to recoup millions or even billions of euros in back taxes while pitching Brussels against Dublin and Washington.

Ireland’s Finance Minister Michael Noonan was told before the summer to expect a decision in September or October, but officials now say September is more likely although they have “no more concrete information,” David Byrne, spokesperson for the Irish finance ministry, said on Saturday.

There have been rumors in the Irish and Danish press, and the Financial Times, that an announcement could come as early as this week.

People close to the case said it was “possible,” but Commission sources dismissed the reports as speculation.

Apple declined to comment but pointed to earlier remarks by Chief Executive Tim Cook, “I hope that we get a fair hearing. If we don’t, then we would obviously appeal it.”

Margrethe Vestager, the European commissioner for competition, would only have a small window in which to announce a decision next week. The Commissioners are on a retreat on the Belgian coast on Tuesday and Wednesday and she is expected to be in Copenhagen on Friday.

Any recovery order will elicit a roar of rage from Washington, which loudly denounced the Commission’s tax cases as being unfair and biased against U.S. companies. The latest salvo came on Wednesday.

An analyst for JP Morgan had estimated the iPhone-maker could face a maximum $19 billion claw-back, while earlier speculation in Brussels has put the amount in the range of $8 billion.

Similar speculation preceded recovery decisions late last year targeting Fiat and Starbucks. While a recovery-order of €500 million was rumored, the eventual bill was a maximum of €30 million each. Both companies have also appealed.

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Jeb

Yeah sure. Not happening. We will allow a token fine (which we won’t pay and you can quietly let slide) but that’s it. Don’t get beyond yourself.

Posted on 8/27/16 | 9:16 PM CET

FierEuropeen

I hope they be fined.
This big US multinationals come to the EU and pay ridiculous amounts of taxes, taking advantage of the EU disintegrated fiscal system, while all the European companies pay all the taxes.